4 Establishing a European Defence Agency
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| Draft Council Joint Action on the establishment of a European Defence Agency
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| Legal base | Articles 14 and 17 EU; unanimity
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| Department | Ministry of Defence
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| Basis of consideration | EM of 26 May and Minister's letter of 27 May 2004
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| Previous Committee Report | None; but see (25035) — : HC 63-xxxviii (2002-03), para 18 (19 November 2003)
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| To be discussed in Council | 14 June 2004 GAERC
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| Committee's assessment | Politically important
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| Committee's decision | For debate in European Standing Committee B
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Background
4.1 The Thessaloniki European Council in June 2003 tasked the
Council with taking action to create an intergovernmental agency
to develop defence capabilities for crisis management, to promote
and enhance European cooperation on armaments, to strengthen the
European defence industrial and technological base and to create
a competitive defence equipment market. It should also promote
research aimed at "leadership in strategic technologies for
future defence and security capabilities, thereby strengthening
Europe's industrial potential in this domain".[8]
Previous consideration
4.2 We first considered this matter on 19 November 2003, when
we cleared a draft Decision on the creation of an Agency Establishment
Team (AET) to work on setting up the European Defence Agency (EDA)
requested by the Thessaloniki European Council. That draft Decision
required the AET to submit proposals to the Council by the end
of April 2004 on the administrative aspects of the Agency and
its financial framework and a draft outline of its first operational
programme.
The draft Joint Action
4.3 The draft, which was still under discussion at the time of
our meeting, spells out:
- how the Agency will perform its four key tasks — capabilities,
armaments, defence industrial issues, and research;
- staffing and organisational structure, including
its relationship with existing European Security and Defence
Policy (ESDP) bodies;
- budgetary and financial rules;
- arrangements for the establishment of ad hoc
projects and budgets; and
- the EDA's relations with the European Commission,
third states and organisations and entities; like the lnstitute
for Security Studies and the Satellite Centre — the other
two bodies set up to support the Common Foreign and Security Policy
— the Agency will have its own legal personality, independent
of the Council Secretariat.
The Government's view
4.4 In his Explanatory Memorandum of 24 May, the
Secretary of State for Defence (Mr Geoffrey Hoon) says:
"The UK has contributed extensively to shaping
the project and its implementation. The Agency will play a key
role in rationalising and harmonising capability requirements
under the EU capabilities development process, and linking those
directly to industrial and research efforts. This will help improve
the military effectiveness of both ESDP and NATO."
4.5 He further explains that:
"The Agency will be directed by a Steering Board
of national Defence Ministers. They have the political authority,
policy expertise and financial means to ensure that Agency recommendations
are implemented by national governments. The Steering Board will
act under the authority of the Council, which will issue guidelines
and decisions by unanimity.
"The Agency Steering Board will make most subsequent
decisions by qualified majority voting. This will help prevent
its policy recommendations being held hostage to national hobby-horses.
However, the UK has negotiated a reinforced 'emergency brake'
mechanism, which will allow any Member State to block a recommendation
detrimental to key national interests (Article 9.3). Projects
will be identified and financed on an opt in or opt out basis
(Article 24 & 24b), preserving our right to participate or
not according to our national interest in each particular case."
4.6 He adds that:
"The Government attaches great importance to
the Agency working effectively with NATO, under the overall framework
of co-operation and consultation between the EU and NATO (Article
27). We also fully support the establishment of such relations
between the Agency and third states that will enable them to take
part in ad hoc projects and in substantial consultations. This
is consistent with our view that the activities of the Western
European Armament Group (WEAG) and Western European Armament Union
(WEAO), of which Turkey and Norway are members, should be gradually
integrated into the Agency."
4.7 He concludes by outlining the proposed financial
aspects:
"Under the GNI key, the UK contribution to the
Agency's general budget is expected to be approximately £243,000
(€360,000) in 2004. The provisional costings for 2005, made
for a proposed staff of 80, would require a UK contribution of
£2.5 million (€3.7 million) to the general budget.
However, the UK is pressing for the Agency to start with a smaller
staff; we would make subsequent growth conditional upon the Agency's
performance.
"In subsequent years we expect the UK contribution
to decrease to about £1.5 million (€2.25 million) a
year, as the non-recurring set-up costs fall away. UK participation
in Agency ad hoc projects would be additional, as would be the
costs of seconding national experts. Both will be decided on
a case-by-case basis."
4.8 In his letter of 27 May 2004, the Secretary of
State recalls the Government's strong support for the Agency project
from its inception and asserts that "the Agency concept,
as developed by the AET, reflects the UK vision of a capability-focussed
Agency under the direction of the national Defence Ministers".
He adds that "the Government can subscribe to the wording
in the attached draft". The Government hopes the text can
be agreed in time for the 14 June General Affairs and External
Relations Council (GAERC) to create the Agency officially, in
which case "we would hope that the Agency could be up and
running by the end of this year".
4.9 The Minister tells us that:
"In terms of process, the Joint Action is expected
to be finalised by the preparatory bodies (the RELEX[9]
Counsellors and COREPER[10])
in the last few days preceding the Council meeting that would
endorse the text. This is why I am sending it to you in its current
draft form. Should the negotiations accelerate unexpectedly,
I hope you will understand that the Government would then be reluctant
to hold up agreement at the Council. I shall certainly provide
you with a copy of the final text as soon as it is agreed."
Conclusion
4.10 The European Defence Agency has clearly reached
an important juncture. Given the ground-breaking nature of the
Agency, we think that it would be timely for Members to have an
opportunity to express their views, and accordingly recommend
the document for debate in European Standing Committee B .
8 Presidency Conclusions - Thessaloniki, 19 and 20
June 2003, paragraph 65 (SN 200/03). Back
9
The officials in each Member State's delegation to the EC who
deal with foreign affairs and defence issues. Back
10
The Committee of Permanent Representatives. Back
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